Correlation Between Smartfren Telecom and IDX 30
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By analyzing existing cross correlation between Smartfren Telecom Tbk and IDX 30 Jakarta, you can compare the effects of market volatilities on Smartfren Telecom and IDX 30 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Smartfren Telecom with a short position of IDX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smartfren Telecom and IDX 30.
Diversification Opportunities for Smartfren Telecom and IDX 30
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Smartfren and IDX is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Smartfren Telecom Tbk and IDX 30 Jakarta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDX 30 Jakarta and Smartfren Telecom is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Smartfren Telecom Tbk are associated (or correlated) with IDX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDX 30 Jakarta has no effect on the direction of Smartfren Telecom i.e., Smartfren Telecom and IDX 30 go up and down completely randomly.
Pair Corralation between Smartfren Telecom and IDX 30
Assuming the 90 days trading horizon Smartfren Telecom Tbk is expected to under-perform the IDX 30. In addition to that, Smartfren Telecom is 1.94 times more volatile than IDX 30 Jakarta. It trades about -0.24 of its total potential returns per unit of risk. IDX 30 Jakarta is currently generating about -0.3 per unit of volatility. If you would invest 47,071 in IDX 30 Jakarta on September 3, 2024 and sell it today you would lose (3,198) from holding IDX 30 Jakarta or give up 6.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smartfren Telecom Tbk vs. IDX 30 Jakarta
Performance |
| Timeline |
Smartfren Telecom and IDX 30 Volatility Contrast
Predicted Return Density |
| Returns |
Smartfren Telecom Tbk
Pair trading matchups for Smartfren Telecom
IDX 30 Jakarta
Pair trading matchups for IDX 30
Pair Trading with Smartfren Telecom and IDX 30
The main advantage of trading using opposite Smartfren Telecom and IDX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smartfren Telecom position performs unexpectedly, IDX 30 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IDX 30 will offset losses from the drop in IDX 30's long position.| Smartfren Telecom vs. Indosat Tbk | Smartfren Telecom vs. Energi Mega Persada | Smartfren Telecom vs. Mitra Pinasthika Mustika | Smartfren Telecom vs. Jakarta Int Hotels |
| IDX 30 vs. Smartfren Telecom Tbk | IDX 30 vs. Hoffmen Cleanindo | IDX 30 vs. Hero Supermarket Tbk | IDX 30 vs. PT Bank Bisnis |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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